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Tracing financial flows remains a major hurdle, with funds increasingly moved through cryptocurrencies, e-wallets, and gift cards, obscuring audit trails.
A large number of cybercrime cases registered across police stations in Karnataka remain unsolved due to the growing sophistication of fraudsters, jurisdictional complexities, and delays in reporting, Home Minister G Parameshwara told the Assembly on Tuesday.
Replying to questions on why many cybercrime cases fail to reach convictions—only two of 2,007 cases registered in 2026 till February 20 have been solved—the minister said that such offences have evolved into a system where anonymity and technology significantly hinder investigations.
Cybercriminals use tools such as virtual private networks (VPNs), proxy servers, and the TOR network to conceal their IP addresses and locations, making identification difficult. Financial transactions are often routed through stolen or fake bank accounts and SIM cards, weakening traceability.
Many cyber fraud operations function as organised networks spread across states or even operating from foreign countries, posing coordination challenges for law enforcement. The use of VoIP services (internet-based phone calls), the dark web, and other methods to minimise digital footprints further reduces the availability of actionable evidence, the minister said.
Tracing financial flows remains a major hurdle, with funds increasingly moved through cryptocurrencies, e-wallets, and gift cards, obscuring audit trails. Delays in filing complaints allow fraudsters to quickly transfer money across multiple accounts, diminishing chances of recovery.
Investigations are also complicated by the fragmented nature of cybercrime networks, where individuals handle specific roles, making it difficult to dismantle entire syndicates even when arrests are made, the minister said. Fraudsters also exploit social media to create convincing fake identities based on real individuals, complicating attribution.
The technical expertise of offenders necessitates advanced cyber forensic capabilities, while jurisdictional challenges persist as offences may occur in one location, with servers or perpetrators located in other states or countries.
To address these challenges, the Government has established a cybercrime police station in every district and city. A Centre for Cybercrime Investigation, Training and Research (CCITR) has been set up to enhance investigative capacity through specialised training in collaboration with the Data Security Council of India. Coordination measures involving the Reserve Bank of India, banks, and police officials have also been initiated to strengthen safeguards against financial fraud, while telecom service providers have been directed to issue awareness messages cautioning users against sharing sensitive information.
Focus on capacity building and awareness
Replying to a question on the initiatives planned for 2026–27, Parameshwara said the focus would be on strengthening cybercrime prevention and enabling faster identification of accused persons through enhanced capabilities.
Training in modern technology and advanced digital forensic tools for personnel of the cyber crime division has been prioritised to improve the quality of investigations, alongside broader capacity-building and institutional strengthening efforts, he said.
Public awareness campaigns will be scaled up through print and social media, along with outreach programmes in schools and colleges, including Cyber Awareness Week initiatives, the minister said. Cyber safety training for students and the wider public, along with regular alerts on emerging frauds, are part of the measures planned to improve the detection and prevention of cyber offences.
Detection and arrests remain low
The number of cases registered at cyber, economic and narcotics (CEN) police stations has remained consistently high over the past few years, while detection rates and arrests have lagged behind.
According to official data, 22,255 cases were registered in 2023, 1,704 of these were solved, and 1,098 suspects were arrested. In 2024, cases rose slightly to 22,483, but the number of solved cases dropped to 1,339, with arrests also declining to 1,036.
In 2025, the number of cases fell to 14,899. However, detections saw a sharper decline, with only 701 cases solved, while 761 accused were arrested.
In 2026, up to February 20, 2,007 cases were registered. Of these, only 2 cases have been solved so far, while 17 accused have been arrested, indicating limited progress in investigations in the early part of the year.
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